Abstract
The integration of computer, communication and consumer-electronics is becoming a world wide development trend. One of the important and promising developments is the TV set-top box which is a crucial part in an interactive TV system. Now more and more leading companies, including media, cable television, telephone, computer companies, and governments are putting much effort and financial support into the R&D of newly emerging set-top boxes to own a position in the huge profitable market. This paper briefly introduces an interactive TV system, its main components, and the rapid change of its functional definition; then outlines the latest major players, their products and joint trials in the TV set-top box market; and finally analyzes the developing and marketing trend strategies from different views and the technical challenges toward TV set-top box or interactive TV and potential solutions.